Since Oceanex and Marine Atlantic together bring in nearly all of the commercial freight in Newfoundland, the decision could have far-reaching effects.

Oceanex had been arguing the terms of union between Newfoundland and Canada stipulate that the federal government must operate a ferry service between the island and Cape Breton, but it doesn’t say Ottawa must subsidize the service.

Meanwhile, the Canada Transportation Act states, “competition and market forces, both within and among the various modes of transportation, are the prime agents in providing viable and effective transportation services.”

Lawyers for Oceanex argued that the minister should have considered Oceanex’s competitive position when setting freight rates.

Oceanex head Syd Hynes told media Wedneday night that he would react to the decision after he has had time to read the documents.